Keep Direct Unit Cost and Purchase Account Different
Modified on: Mon, Dec 12, 2016 at 3:02 PM
||Keep Direct Unit Cost and Purchase Account Different
Why v should keep Direct Cost Applied and Purchase Account Different ?
# 1 If we keep them same and down the line after a year or so client asks for fixed indirect cost to be posted then this will be an issue. As it is always Direct cost paid by Vendor and Purchase is inclusive of Direct Cost + Indirect Cost.
# 2 Assuming that automatic cost posting is not checked then if i purchase material at $10 and create a credit memo for same at $8. System will keep inventory 0 and cost as 2 by the time i don't run post inventory cost to G/L , could be misleading. Reason the Sum of Direct Cost Applied and Purchase is Equivalent to sum of Vendor purchase and Returns
i.e. Direct Cost Applied + Purchase = Vendor Purchase + Returns.
Yeah for example stated above the once u run the post inventory cost to G/L system will post credit $2 to inventory and debit $2 to Direct Cost applied.
#3 Notice entry type purchase posting from item journal.
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